Correlation Between Griffin Mining and Neometals
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and Neometals at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Griffin Mining and Neometals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and Neometals, you can compare the effects of market volatilities on Griffin Mining and Neometals and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Griffin Mining with a short position of Neometals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and Neometals.
Diversification Opportunities for Griffin Mining and Neometals
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Griffin and Neometals is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and Neometals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neometals and Griffin Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Griffin Mining are associated (or correlated) with Neometals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neometals has no effect on the direction of Griffin Mining i.e., Griffin Mining and Neometals go up and down completely randomly.
Pair Corralation between Griffin Mining and Neometals
Assuming the 90 days trading horizon Griffin Mining is expected to generate 0.79 times more return on investment than Neometals. However, Griffin Mining is 1.26 times less risky than Neometals. It trades about -0.06 of its potential returns per unit of risk. Neometals is currently generating about -0.14 per unit of risk. If you would invest 14,750 in Griffin Mining on September 12, 2024 and sell it today you would lose (550.00) from holding Griffin Mining or give up 3.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffin Mining vs. Neometals
Performance |
| Timeline |
| Griffin Mining |
| Neometals |
Griffin Mining and Neometals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and Neometals
The main advantage of trading using opposite Griffin Mining and Neometals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, Neometals can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Neometals will offset losses from the drop in Neometals' long position.| Griffin Mining vs. Givaudan SA | Griffin Mining vs. Antofagasta PLC | Griffin Mining vs. Ferrexpo PLC | Griffin Mining vs. Atalaya Mining |
| Neometals vs. Givaudan SA | Neometals vs. Antofagasta PLC | Neometals vs. Ferrexpo PLC | Neometals vs. Atalaya Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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